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 Pravartak
Magazine, “Selling Non-Motor Insurance Salvage”
, July 2009
A ‘Claim’ by an Insured is the ultimate
reality for any Insurer and when a disaster
befalls their client there’s only so much they
can do to help. In any claim settlement
activity, be it fire, earthquake, flood or
marine, there is always some property that is
saved either in sound condition or partially
damaged condition. This saved property is
called ‘Salvage’. As per dictionary, one of
the meanings of the term ‘Salvage’ is
‘something saved from destruction or waste and
put to further use’. Salvage goods typically
result from circumstances of accident,
distress, or theft and may be heavily
discounted according to their condition.
Nevertheless, they are goods that retain some
market value—usually from 25% to 35% of the
insurance claim value or 40-60% in the case of
theft recoveries. Salvage can take form of,
say, water affected paper, fire affected
rubber, air-contaminated chemical, damaged
steel generated from a collapsed building and
so on. Therefore, although there is no
exhaustive list, but salvage may include
various industrial or household goods
(including motor vehicles) that have incurred
some kind of damage / depreciation in their
market value due to operation of some peril
that was insured for under the subject
insurance policy.
To read more
click here...
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 Dare
Magazine, “Selling Insurance Salvage”, January
2009
With general insurance companies now
outsourcing the sale of salvage, the business
is set to boom in the coming years.
When fire gutted a paint manufacturing factory
in Ghaziabad in October 2007, all that
remained of the facility was 200 metric tonnes
of iron and steel scrap fit to be sold at a
dirt cheap rate.
The insurer of the factory – IFFCO-TOKIO
General Insurance – decided to put the scrap
on sale. As normal practice, the
company-appointed surveyor would double up as
a salvage manager to rope in suitable buyers
for the scrap and sell the commodity at
whatever price he would get within a short
span.
To read more
click here... |
